* Change in operating cash flow is replaced with: (i)
tangible book value per share growth for companies in the Banks, Diversified Financials and Insurance sectors; and (ii) growth in funds from operations for REITs, with the exception of Mortgage and Specialized REITs.
Therefore, if you purchase our common stock in this offering, you will incur immediate dilution of $ in the net
tangible book value per share from the price you paid.
It has a lot of room for growth From the third quarter of 2012 to the third quarter of 2013, Synovus has watched
its tangible book value per share (which represents the equity the company has that is actually available to shareholders) rise from $ 2.07, to $ 2.86, which is an increase of almost 40 %.
Using the measure of
tangible book value per share penalizes acquisitive companies, unless they can buy companies for less than their tangible book value per share.
However, if I look at the developement of book values for financial companies, I always look at both, stated and
tangible book value per share.
In order to calculate
the Tangible Book Value per share you need to divide the Tangible Book Value by the number of shares outstanding.
With these assumptions, after four years, not only would earnings per share be 20 % higher than they otherwise would have been, but
tangible book value per share would be 15 % higher than it otherwise would have been.
Our tangible book value per share is a good, very conservative measure of share - holder value.
The net proceeds from the sale of the 2,444,450 units represents an immediate increase in net
tangible book value per share of $ 2.52 to the existing stockholders and dilution of $ 1.74 per share to the new investors.
And, if I can be so radical, we begin ignoring earnings and focus on growth
tangible book value per share.
I determine
the tangible book value per share of a company (whether supplied on the annual report or not) for each company that I analyze.
Book value per share decreased to 3.5 % to $ 13.10 as of December 31, 2007 from $ 13.57 as of December 31 2006 and
our tangible book value per share was $ 11.38 as of December, 31 2007 down from $ 11.89 as of December 31 2006.